Correlation Between Guosheng Financial and Zhejiang Daily
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By analyzing existing cross correlation between Guosheng Financial Holding and Zhejiang Daily Media, you can compare the effects of market volatilities on Guosheng Financial and Zhejiang Daily and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Guosheng Financial with a short position of Zhejiang Daily. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and Zhejiang Daily.
Diversification Opportunities for Guosheng Financial and Zhejiang Daily
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guosheng and Zhejiang is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding and Zhejiang Daily Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Daily Media and Guosheng Financial is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Guosheng Financial Holding are associated (or correlated) with Zhejiang Daily. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Daily Media has no effect on the direction of Guosheng Financial i.e., Guosheng Financial and Zhejiang Daily go up and down completely randomly.
Pair Corralation between Guosheng Financial and Zhejiang Daily
Assuming the 90 days trading horizon Guosheng Financial Holding is expected to under-perform the Zhejiang Daily. In addition to that, Guosheng Financial is 1.52 times more volatile than Zhejiang Daily Media. It trades about -0.27 of its total potential returns per unit of risk. Zhejiang Daily Media is currently generating about -0.22 per unit of volatility. If you would invest 1,134 in Zhejiang Daily Media on October 17, 2024 and sell it today you would lose (154.00) from holding Zhejiang Daily Media or give up 13.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guosheng Financial Holding vs. Zhejiang Daily Media
Performance |
| Timeline |
| Guosheng Financial |
| Zhejiang Daily Media |
Guosheng Financial and Zhejiang Daily Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and Zhejiang Daily
The main advantage of trading using opposite Guosheng Financial and Zhejiang Daily positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial position performs unexpectedly, Zhejiang Daily can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Zhejiang Daily will offset losses from the drop in Zhejiang Daily's long position.| Guosheng Financial vs. Tibet Huayu Mining | Guosheng Financial vs. Rising Nonferrous Metals | Guosheng Financial vs. Guangdong Jingyi Metal | Guosheng Financial vs. Wonders Information |
| Zhejiang Daily vs. Jiangsu Hoperun Software | Zhejiang Daily vs. Servyou Software Group | Zhejiang Daily vs. Heilongjiang Transport Development | Zhejiang Daily vs. Thunder Software Technology |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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